Government considers massive bailout of "distressed" mortgages

- New York Times article by Edmund L. Andrews - September 18, 2008

This article details the possibility of what would be "the biggest bailout in United States history". Apparently officials are in discussion  about what exactly to do about this most pressing issue, but from what I gathered from the article, they (The Federal Reserve, Treasury, and Congress) seem to be leaning towards bailing out the failing assets. This is a complex and delicate issue, and I do not profess to have any understanding of it beyond those whom are attempting to address it, but it is at least apparent that it boils down to a conflict of principles. On the one hand the views of the Federalists, lead by John Locke, would promote the government's swift intervention on behalf of the people who suffered due to poor loans. Thomas Hobbse's Anti-Federalists would, in contrast, prefer the situation be left to the businesses. However, the views of the Federalists and Anti-Federalists do not apply only to the solution of the problem, but also its causes. It seems that this is a perfect opportunity to explore the pros and cons of the opposing opinions, because to the best of my knowledge this crisis was brought about by the poor choices of private companies, not government policies. The causes of this particular incident are highly relevant to its solution, whatever that may be. The Anti-Federalists trust the private corporations to make their own choices, and thus be responsible for their outcomes. The Federalists would call for more regulations in business, arguably preventing the disaster before it occurred. 

The fact remains, however, that the money our government would be using to patch up the economy does not technically exist, due to our shocking national debt. Therefore the argument could be made that plunging our country even deeper into a monetary deficit would set us up for an even greater fall later. Personally I would agree with this last possibility, and let the economic fires burn themselves out, so to speak. However, I have not been the victim of any of the economic failings so far, so my ability to make an impartial decision is hampered accordingly. It is entirely possible that I would be singing a different tune if my own financial security and that of my family was jeopardized.